I would like to thank the contributors and HAU for this symposium. It is a great privilege to receive such insightful and challenging comments, which have expanded and clarified my thinking on a range of fronts. I'll begin with the comment of Stephen Lyon and David Henig because they raise fundamental methodological questions. I am very pleased that they see my book as having significance for d...

There is an important hemispheric distinction in the functional organization of prefrontal cortex (PFC) that has not been fully recognized and explored. Research with split-brain patients provides considerable evidence for a left hemisphere (LH) "interpreter" that abhors indeterminacy and automatically draws inferences to complete patterns (real or imaginary). It is suggested that this "interpr...

We study the impact of intra-industry trade and capital mobility on steady state welfare stability properties two countries with identical technologies preferences. consider a two-factor overlapping generations model, featuring one-sector differentiated goods taste for variety. There is imperfect competition in output market increasing returns to scale production (fixed costs externalities). In...

In this paper, we extend the finance constrained economy proposed by Woodford (1986) to incorporate unions, imperfectly insured unemployment and transfers. We show that this simple extension of the Woodford model changes drastically its stability conditions and local dynamics around the deterministic steady state. By contrast to most related models in the literature, we find that sunspots and d...

In this paper, we consider the local uniqueness properties of stationary rational expectations equilibria (REE) in a stochastic overlapping generations (OLG) model. It is known that in non-stochastic OLG models, steady-state equilibria are locally isolated, although there may exist indeterminate non-stationary perfect foresight equilibria. We show by construction that in the stochastic model, e...

We incorporate imperfectly insured unemployment in the finance constrained economy proposed by Woodford (1986), by introducing unions and unemployment benefits financed by labor taxation. We show that this simple extension of the Woodford model changes drastically its stability conditions and local dynamics around the steady state. In fact, in contrast to related models in the literature, we fi...

We consider a family of infinitely long lived representative agent economy where, each period, agents can only decide consumption plan of finite dimension n. It is shown that myopia generates indeterminacy and monetary equilibrium in infinitely lived representative economy. Any invertible dynamics with at most one monetary steady state that is increasing in the quantity of money can represent t...